Infomercial Advertiser Settles With FTC
March 8, 2010 at 4:28 AM (PT)
A company that advertised dietary supplements and an infrared sauna on radio infomercials has settled with the Federal Trade Commission and will send $3 million in refunds to customers. ROEX INC. and principals RODNEY H. BURRESON and MARK ALEXANDER had been charged by the FTC with making false or unsubstantiated claims about its products' cancer-fighting abilities in the infomercials as well as in print and online; the products were also touted as treatments for HIV, diabetes, strokes, heart attacks, Alzheimer's disease, arthritis, multiple sclerosis and other autoimmune diseases, ulcers, herpes, asthma and glaucoma.
Under the settlement, checks averaging $500 each will be sent to customers. The FTC voted 3-1 to approve the settlement, with Commissioner J. THOMAS ROSCH dissenting because he believed "the monetary relief in this consent decree does not reflect the seriousness of the conduct involved."